Solved: Microsoft Update failed-BITS Error

automatic microsoft update continued to fail on everyday from Feb 16th and today i tried to do manual update [Microsoft .NET Framework 2.0 Service Pack 1 (KB110806)]. I received a error:Error Code: 0x80246008.

The Microsoft Help asked me to start BITS (Background Intelligent Transfer Service) and I received an "cannot start the Background Intelligent Transfer Service on Local Computer. Error 126: The specified module couldnot be found"

Please help me. What I can do to resolve this error? I am actually using Win XP (servicepack 2). why the update is installing servicepack 1?

2. Locate the file "qmgr.inf" in the opened folder (you can type au to locate this file), right click on the file and choose "Install".

Note: The file extension ".inf" may be hidden; we may only see the file named "qmgr".

3. The setup process will try to restore the registry branches automatically. You may not receive any notification. However, if some files cannot be located automatically, we will be prompted to select the installation source. Please click browse, and go to this location:

C:\Windows\ServicePackFiles\i386

If this folder is not available, please choose the folder C:\Windows\System32.

If the issue still persists, please take your time to help me collect the following information for further research.

Screenshot
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Note: If there is any error message received, please capture a screenshot about the error message.

1. Press the Print Screen key (PrtScn) on your keyboard.

2. Click "Start", click "Run", type "mspaint", and click "OK".

3. In Paint, click Paste under the Edit Menu, click Save under the File menu, type a file name for the screenshot, choose JPEG as "Save as type", click Desktop on the left pane, and click Save.

4. Please find the screenshot on the Desktop and send it as an attachment to: [email protected]

System Information
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The System Information can provide us with more information about the current status of the system. I would like to check it for you. Please send it to me using the following steps:

Note: When attaching files to emails, the process will vary depending on the email application being used. While you are composing the email, most applications will provide you with either an Attach Button or Paper Clip Icon to click in order to attach a file. After clicking this button/icon you must browse to the file you wish to attach and select it by either double clicking it or clicking it once and then clicking on the attach button.

For more information about the System Information tool, please refer to the following article:

I encountered the same issue with MS updates that failed to download and install. http://support.microsoft.com/kb/910337 didn't help and after searching MS KBA's without success, I emailed MS support.

My BITS service had become corrupt.

Like tikka_masala described; I implemented the following changes and updates now download & install properly.

Here's what I did after setting a restore point:

1. Click Start, and click Run.
2. Enter the following command, and press Enter
"Reg add HKEY_LOCAL_MACHINE\SYSTEM\CurrentControlSet\Services\BITS\Parameters /v ServiceDll /t REG_EXPAND_SZ /d %windir%\System32\qmgr.dll" (no quotes) Next I was prompted with Value ServiceDll exists, overwrite (Y/N)?", and chose Y for yes.
3. Restart the PC and retry Windows Update. At this point all critical updates downloaded but not all installed, so I added "Reg add HKLM\SYSTEM\CurrentControlSet\Control\BackupRestore\FilesNotToBackup" as indicated below.

If the above command does not work, please try the following command:
"Reg add HKLM\SYSTEM\CurrentControlSet\Control\BackupRestore\FilesNotToBackup" (no quotes)